The value of investments and any income from them can fall and you may get back less than you invested.

MISM US Fund in Focus


The MI US Select fund, within MPS, is a segregated mandate with an approximate 55/45 split between JPMorgan US Equity Income and Baillie Gifford American Growth. These mandates are not the exclusive US equity exposure in the portfolio, an allocation is also reserved for a passive holding, providing market exposure at extremely attractive rates. The JPM US Equity Income and Baillie Gifford management teams have been selected due to their excellence within their respective areas of the market, namely Value and Growth.

Value, as a strategy, is one we would associate with lower prices paid relative to the current level of earnings. The market might apply this discount for many reasons but will often be down to low expectations for earnings growth or a higher level of volatility around the earnings stream. Indeed, economically sensitive business such as banks, industrial and commodity businesses, will often find themselves lumped into the Value category for exactly these reasons. Upside rewards are on offer here, if stocks enjoy both earnings growth but also a positive rerating for those earnings. Conversely, and though no cycle is identical, Value is likely to struggle in a recessionary environment as the double whammy of an earnings collapse and a lower rating paid for those earnings can mean dramatic falls in share prices.

JPMorgan are currently widely invested in banks and energy where, provided the US avoids a recession, and the oil price remains reasonably firm, the two sectors should deliver a decent earnings performance and pay healthy dividends.

Growth as a style, will typically see managers buy business trading at higher ratings. This is because the market either has high confidence in a modest but consistent level of revenue growth, or because there is the potential for supernormal growth. A consumer staple business such as P&G would fall into the former camp whilst Netflix would fall into the latter.

Baillie Gifford are fully immersed in the US Technological and Biotechnological innovators that are changing the landscape regarding consumer, business and medical trends.

This style has been particularly in favour over recent years as concerns about banking fragility and high optimism about Technological disruption have dominated the investment narrative.

Which style will win out? This is a hard one to call, however, unlike many other investment houses we are unwilling to bet against Tech given the high valuations. Such a dogmatic stance will have cost clients dear. And, who knows, perhaps Amazon will be the only listed business left in the world in 10 years.

Our strategy is to split evenly between the two styles, with a little less in Baillie Gifford given their starker style positioning, letting stock selection do the talking. On that basis, and aided by the highly competitive charging structure, we are delighted to see the MI Select US fund outperforming its target index since initiation. 

Ben Gutteridge, CFA

Head of Fund Research

Important Information:

Past performance is not a guide to future performance.

No investment is suitable in all cases and if you have any doubts as to an investment's suitability then you should contact us.

The information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.

The value of investments can fall and you may get back less than you invested.

If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset.

The opinions expressed in this document are not necessarily the views held throughout Brewin Dolphin Ltd.



Newsletter Signup

Stay updated

Receive email updates with news and views from Brewin Dolphin and information on our products and services.

Capturing your post code will allow us to tailor some of our communication to include regional views and updates that may be of interest to you.

We respect your privacy and take protecting it very seriously. We will only use your data in accordance with your preferences stated above. In keeping with our existing practice, we will never sell your personal data to any third parties.

If, in the future, you would like to update any of your marketing communication preferences, you will receive an email that will provide a link to our Preference Centre.

Brewin Dolphin will use the data you provide for the purpose of providing information about events, insights and services we offer.

You are entering the financial advisers' section UK legal information

Important Information

Please read this page before proceeding, as it explains certain legal and regulatory restrictions applicable to the information in this section of the website.

By clicking the 'Accept'/'Decline' buttons at the end of the page, you acknowledge that the important information below has been brought to your attention.

This section of the website is intended for residents of the United Kingdom only and any dispute or action arising out of the website shall be determined in accordance with English laws. Under no circumstances should any information or any part of it be copied, reproduced or redistributed.

The information provided in this section of the website is intended solely for investment advisers, accountants, solicitors and any other professional financial intermediaries who are authorised and regulated by the Financial Conduct Authority. This information must not be distributed to, or relied upon by, private clients and the general public.

This website should not be regarded as an offer or solicitation to conduct investment business, as defined by the Financial Services and Markets Act 2000, in any jurisdiction other than the United Kingdom. Investors who are resident in or citizens of countries other than the United Kingdom may be subject to local restrictions. In particular, no offer or invitation is made to any US persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof), who are excluded from the products or services offered in this site.

Brewin Dolphin Limited is registered in England and Wales under company number 2135876 with its registered office at 12 Smithfield Street, London EC1A 9BD. Brewin Dolphin Limited is a member of the London Stock Exchange and authorised and regulated by the Financial Conduct Authority (Financial Services Register reference number 124444).

The information contained in this section of the website has been obtained from sources which we believe to be reliable and accurate at the date of publication, but without further investigation this cannot be warranted. We are not responsible for the content of external websites that are linked from our webpages. Any opinions and comment expressed in this website are not necessarily the views held throughout Brewin Dolphin Limited. All opinions and comments are subject to change without notice.

The value of investments and any income generated may go down as well as up and is not guaranteed. Investors may get back less than they have invested. Past performance is not a guide to future performance. Quoted yields are not guaranteed. Different funds have different levels of risk. Changes in currency exchange rates may have an adverse effect on the value, price or income of investments. Interest rate fluctuations are likely to affect the capital value of investments within bond funds.

We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed here.

This website uses cookies to store information on your computer. These cookies contain no personal or confidential information and we will not attempt to identify you from this information. They are important because they allow us to make your website experience better and they also help us to monitor how people are using our website and make improvements appropriately. To find out more, please visit our Privacy and Cookie Policy.

Please click below to confirm that you are a UK investment adviser or a professional financial intermediary, and that you have read and agreed to the important information above.

By clicking accept below you confirm that you have read the important information and wish to continue to this site.

Accept Decline